Kenyans Default KSh 3b Hustler Fund Loans In 9 Months: "Non-Performing"

• President William Ruto launched the Hustler Fund in December 2022 as his flagship project for ordinary Kenyans and business groups
• Since its unveiling, Kenyans have borrowed over KSh 30 billion from the Fund, with KSh 10 billion yet to be repaid
• The head of state promised to go after Hustler Fund loan defaulters, noting there would be no place to hide for defaulters

President William Ruto's financial inclusion adviser Moses Banda has revealed 29% of the KSh 10.2 billion outstanding Hustler Fund loan has been defaulted.

This means that approximately KSh 2.9 billion of the Hustle Fund was non-performing, indicating the challenges faced by borrowers.

Banda disclosed Kenyans borrowed over KSh 30 billion from the fund since its launch in November 2022 by Ruto.

“Out of the KSh 33 billion that has been lent out (under the Hustler Fund), the outstanding loan book is about KSh 10.2 billion; remember, these are short-term loans, so they get repaid pretty fast. Of the outstanding amount, 29% is not performing on time," Business Daily quoted Banda.

How gov't will deal with defaulters

In June, Ruto promised to go after Hustler Fund loan defaulters.

He confirmed that the KSh 50 billion kitty he launched faced bad loan challenges.

Speaking during a church service in Kajiado county on Sunday, June 25, Ruto warned those not servicing the loan that their days were numbered.

"A few Hustler Fund borrowers think they are clever. I know where I will catch them... those who take the loan and refuse to pay. They have learnt that we have rolled out the Hustler Fund for chamas and are now lining up in some of the groups," said Ruto.

Why Kenya will borrow from Word Bank

On Friday, August 18, TUKO.co.ke reported Ruto's administration initiated talks with the World Bank for a KSh 20 billion loan to finance the Hustler Fund.

According to Bloomberg, the loan will support small enterprises. The government intends to loan KSh 200 billion to hustlers over the next five years.

Co-operatives and Micro, Small and Medium Enterprises Development Cabinet Secretary (CS) Simon Chelugui said Treasury will invest KSh 10 billion in the Fund by June 2024.

The Kenya Kwanza Alliance administration was also in talks with the European Union (EU) and the US Agency for International Development to finance its flagship project.